Leveraging EO for Commercial Success
Can being an employee owned business make a commercial difference, and if so, how? What are the key differentials and levers that can be pulled to benefit the business and its employees? How can it become more than just a logo?
This article, authored by Simon Carter an IDT independent trustee, provides a summary of the general impressions, themes, and ideas shared in a session entitled Leveraging Employee Ownership for Commercial Success.
It has been enhanced and expanded with additional insights gained from the experience of IDT with our own EO clients and our wider EO network.
Introduction
Consumers are more discerning than ever, they not only care about the quality and cost of products and services, they also want to know the values that underpin brands they choose to buy from. Employee-owned companies should have a natural edge in this area if perceived as ethical, transparent and committed to long-term relationships – moving from simply a profit-generating entity to a business with higher purpose and human connection.
At the same time, employee-ownership naturally brings a human element to the forefront of your business that could be powerful where an owner mindset translates into customer service, enthusiasm and a vested passion for the brand, company and its products or services. That pride and passion often translates into a more personal service for customers and shouldn’t be under-estimated in a world of online indifference and impersonality.
The Human Element
At the same time, employee-ownership naturally brings a human element to the forefront of your business that could be powerful where an owner mindset translates into customer service, enthusiasm and a vested passion for the brand, company and its products or services. That pride and passion often translates into a more personal service for customers and shouldn’t be under-estimated in a world of online indifference and impersonality.
A direct stake in the company’s success can also create a level of pride and care that resonates with consumers looking for authenticity and a more personal touch (people buy from people), and it can create a level of collaborative spirit, initiative and problem-solving that translates into agility and customer service (people buy from companies that work with them to fill a need or solve a problem).
An owner mindset can subliminally create a positive experience for those who deal with a company - if employee-owners are prepared to ‘go the extra mile’ for each other to ensure business success in the course of their everyday activities, they are likely to do so for their customers as well.
When done well, employee-ownership encourages strong internal communication and awareness across all levels of the organisation, which in turn creates agility and unity of effort. It also empowers employees to identify and take opportunities or act. This can all combine into a competitive edge.
And because employee-owned businesses are not solely driven by shareholders and profit, they often stand out in their commitment to social responsibility – their view of success can often be more holistic and this shift in the dynamics of how the company thinks leads to more strategic decision-making as well as reassurance that the company will be around for the long haul.
In Summary
Employee ownership is not just a business model, it is a powerful way to shape a company’s culture and build a distinctive brand with a unique story.
The company is anchored in a mindset that everyone is an owner, in the way they think and interact with others and in their alignment with company success, which can translate into a powerful message, reassurance, and a strong customer experience.
And the same internal factors that are evidenced in above average performance can translate directly into differentiators in the marketplace.
With so many inherent advantages and everyone in the business on equal terms as a brand ambassador, it is surprising that more company’s aren’t explicit on why employee ownership is a differentiator – it’s more than just a logo on your website, and worth shouting about.
Final Impression
This informal breakout session was a useful reminder that when employee ownership works well it can underpin many parts of an organisation including customer interactions with employees. Processes and procedures won't bring it to life, but engaged enthusiastic, loyal and proud employees will.
These notes were produced by Simon Carter, an IDT independent trustee, from his attendance at a breakout session entitled ‘Leveraging Employee Ownership for Commercial Success’ at the Employee Ownership Association annual conference in November 2024.
Content gained from the session has been expanded to include knowledge that IDT has gained through working with over 50 employee owned businesses across a number of sectors, including large and small EO businesses, from transition through EO evolution to beyond financial freedom day.
Simon is a governance expert with a strong interest in employee ownership. He is appointed as the independent trustee to a number of EO companies across a diverse portfolio, as well as being a non-executive director on the board on non-EO companies.
